Australia Seeks Cushion With Surprise Rate Cut

By

James Glynn

Updated May 7, 2013 6:10 a.m. ET

SYDNEY—Australia's central bank cut interest rates to a record low Tuesday, seeking to cushion the economy from a strong currency that's undermining the nation's competitiveness and preparing for the end of a decadelong resources boom.

In a surprise move, the Reserve Bank of Australia, or RBA, lowered the benchmark cash-rate target to 2.75%, expressing concern that the Australian dollar remains close to 30-year highs. The high currency is crippling the nation's manufacturers and exporters, while rate-sensitive sectors...